Principles of Macroeconomics

Read the articles:

1)      "Wait, Is Saving Good or Bad? The Paradox of Thrift" by E. Katarina Vermann

http://research.stlouisfed.org/pageone-economics/pages/newsletter.php?nid=64

2)      The paradox of thrift — for real

http://krugman.blogs.nytimes.com/2009/07/07/the-paradox-of-thrift-for-real/?_r=0

3)      Interest Rates, Aggregate Demand, and the Paradox of Thrift

http://muddywatermacro.wustl.edu/interest-rates-aggregate-demand-paradox-of-thrift

In your response to the topic you have to answer all 3 questions.

1. What is the paradox of thrift? Is Saving Good or Bad?Is it real?

2. Give an example of the paradox pf thrift..

3. What is the reverse paradox of thrift?